Australia is well on track to have its biggest year for mutton exports, with more than 200,000 tonnes sent overseas in the first 10 months of 2024.
Most of the nation's mutton is going to China, with barely any staying in Australia.
According to Meat and Livestock Australia (MLA), the nation has processed nearly 1 million sheep over the past four weeks, which is up 42 per cent on the same period last year, and up 72 per cent on the same period in 2022.
"We've seen several years of growth in the national flock, demand from overseas markets is strong, and supply has been there to match it," MLA's Tim Jackson said.
"The biggest market this year for mutton has been China, where we've exported almost 67,000 tonnes so far this year, followed by Malaysia, the United States and Saudi Arabia."
Mr Jackson said about 95 to 97 per cent of Australia's mutton was exported each year and 2024 was no different, with Aussie consumers preferring lamb over sheep meat.
The national combined sheep and lamb slaughter reached 718,000 head last week, which again, was a record.
Mutton exports reached a record 209,580 tonnes last year, which will easily be surpassed this year.
Nearly one million sheep processed in just four weeks. (ABC Landline)
The national mutton indicator jumped 12 per cent this week to $3.63/kg (cwt), which is up about $2.10/kg on this time last year.
Wayne Driscoll, a livestock agent in the Wimmera region of Victoria, said demand for sheep was strong and supply was starting to fall.
"It's a little bit exciting. We've been saying for a while there's going to be a shortage [of mutton] in the new year, but it's started a bit earlier," he told the Country Hour.
"I think there were 12 mutton processors at the rails at Ballarat, and there's just a thirst for it.
"Potentially in the new year you could be seeing sheep in the $5/kg (cwt) category."
Sheep and lamb prices lifted this week for a few reasons. (ABC Landline)
Mr Driscoll said sheep were averaging $29 a head at the Horsham saleyards in Victoria a year ago, but this week were getting $81 a head.
Meanwhile, the $5/kg (cwt) mark was breached at Wagga Wagga this week, with two major export processors competing for some quality lines of sheep.
Extra heavy Merino ewes sold for up to $174 a head.
Data released from the Australian Bureau of Statistics this week shows Australia's sheep flock is officially in liquidation, only just, but it does seem processors will be bidding on a declining flock in 2025.
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